Company solution (FCT)
Company pension fund
The Company Pension Fund solution is designed for companies seeking to establish a comprehensive occupational benefits solution allowing them to make the effective decisions on the asset management, interest rate policy, conversion rates, etc.
Key value added of this solution is a combination of a tailored employer occupational benefits solution with the cost advantages of the large size of the Collective Foundation.
Structure and organisation
Every affiliated company constitutes a group of Insureds within the FCT. Each Pension Fund has its own Pension Committee. This body is not necessarily a joint Committee but includes at least one representative of the employer. The Pension Committee of each Fund is responsible for the matters related to:
- its pension plan(s)
- its reinsurer (the Foundation also offers an insurance at an attractive collective rate)
- its custodian(s)
- its investment strategy
- its asset manager(s)
- its investment adviser (optional)
Each Pension Committee determines how the Pension Fund's assets are invested in compliance with the legal regulations. The Pension Committee selects the custodian bank and the asset managers among the partners approved by the FCT.
The Foundation has also defined various pooled investment strategies with three banking institutions. The Pension Committee can therefore consider various options (and combine them if appropriate) for the management of its Pension Fund’s assets.
The investment profiles and the financial partners (custodian bank and asset managers) in charge of its implementation are reviewed periodically (every 3 to 5 years) based of an ALM study performed by a specialized expert. Each Pension Fund will be provided annually with a prospective analysis of its risks (opportunities and points of vigilance).
Investment fluctuation reserve
The investment fluctuation reserve target is calculated for each Company Pension Fund based on a probabilistic method and a minimum security level of at least 95%.
The coverage ratio is calculated individually for each Company Pension Fund.
If the Company Pension Fund is underfunded at the time of affiliation or later, it is subject to the regulatory recovery measures.
The Pension Committee of each Company Pension defines its pension plan(s) by choosing the:
- savings plan
- interest rate on savings accounts
- conversion rate
- risk benefits
- funding method
Interest rates on savings accounts
The interest rates on savings accounts for each Company Pension Fund are determined by its Pension Committee, based on a method (to be chosen between various options proposed by the FCT) taking into account the funded status and the investment fluctuation reserve target.
The conversion rate (used to convert the retirement savings capital into a retirement pension) is determined by the Pension Committee of each Pension Fund.
In the event that the set up rate is higher than the reference rate calculated on the basis of the actuarial tables of the FCT and recommended by the accredited pension expert, a corresponding provision must be financed by the Pension Fund. The Pension Committee may choose to buy back the retirement pensions from its death and disability reinsurer.
Each Pension Committee shall choose a congruent reinsurance covering the death and disability benefits, either through one of the collective contracts negotiated by the FCT, or through an individual contract with one of the Swiss insurers supervised by FINMA.